BE AWARE OF RE-EMERGENCE OF CASHIER’S CHECK FRAUD

BROKER ALERT

BE AWARE OF RE-EMERGENCE OF CASHIER’S CHECK FRAUD

Recently, a cashier’s check fraudulent scheme has re-emerged.  In this situation, a fraud buyer writes an offer on a property and gives the title company a cashier’s check.  The title company deposits the check.  The buyer cancels the transaction and asks for a refund.  The title company will then refund the deposit to the buyer.  Thereafter, the title company discovers that the check was fraudulent.  This creates a loss to the title company, as the title company will refund the deposit before the check is identified as fraudulent.

Another variation of this scheme is a potential tenant giving a cashier’s check to an agent or property manager.  The “tenant” changes their mind and asks for a refund.  A refund is provided before the cashier’s check is found to be fraudulent.

Be aware of these schemes and if you receive a cashier’s check, before refunding any money, ensure the cashier’s check is valid.

DO NOT FORWARD TO SELLERS OR BUYERS.  This Broker Alert is for the exclusive use of clients of Broker Risk Management and their agents.  It may not be reproduced or distributed without the express written consent of Broker Risk Management.  The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry but rather are intended to suggest good risk management practices.